Crude Oil and Natural Gas Trading In The Green

WTI crude oil closed up 24 cents at $96.58 a barrel, up by 0.25% yesterday. Crude oil futures staged a modest rebound from earlier losses, clawing back above $96 per barrel to extend gains for the fourth session in a row, as recent signs of economic recovery bode well for demand prospects. Crude remains flat after the Asian session today. Crude prices were supported on optimism that US economy is recovering which would improve the demand prospects for crude. However the upside was limited due to a stronger dollar which is trading new a record high of 83.40 this morning and higher inventories which came at 3.3M. The U.S. Energy Information Administration reported a climb in crude supplies that was about double market expectations. Crude supplies rose 3.3 million barrels for the week ended March 22. Analysts expected a 1.6 million-barrel climb. Motor gasoline supplies fell by 1.6 million barrels, matching analysts’ expectations, while distillate stockpiles declined by 4.5 million barrels, compared with forecasts for a decline of 700,000 barrels in distillate supplies.

Traders can expect crude prices to go slightly up as loose monetary policies by US and Japan is likely to support prices. Assurances from the new head of the Bank of Japan that he would push through more stimulus and new programs at next week’s meeting helped support oil prices.

Japan’s oil imports from Iran rose 15.9 percent in February from a year ago to the highest in eleven months, customs cleared data showed on Thursday, a rare increase from one of the major buyers of crude from sanctions-hit Iran.

An average of analysts’ oil price predictions polled by Reuters edged higher again for the fourth consecutive month in March, tempering expectations of a 2013 oil price down on the previous year. Reuters’ monthly survey of 27 analysts forecasts Brent will average $110.80 per barrel in 2013 – up from last month’s $110.10 average prediction – down from $111.70 last year

U.S. natural gas closed higher on Wednesday on bullish inventory expectations and chilly weather forecasts for at least the next week. Recent colder-than-normal temperatures on the East Coast are probably the primary reason for the large draw in heating-oil supplies. Natural gas looks strong today as increased heating demand is likely to push prices higher. On its first trading day as a front-month contract, May NG closed at $4.07 up 8 cents, or 1.9%. That marked the highest settlement value for a front-month contract since Aug. 11, 2011. We have seen institutional money come into the sector and a colder last few weeks have helped the natural-gas markets get to $4. The EIA will report its weekly data on natural-gas supplies on Thursday. Analysts forecast a decline of between 83 billion cubic feet and 87 billion. May natural gas is trading at 4.085 almost flat this morning.